2024 (8) TMI 687

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....re (NFAC), Delhi for the Assessment Years 2017-18 & 2014-15 respectively. 2. The Revenue has raised the following grounds of appeal :- ITA No.533/Ahd/2023 for A.Y. 2017-18 "1. CIT(A) has erred in allowing the disallowance under Section 80P(2)(d) of the IT Act of Rs. 6,35,19,390/- being interest and dividend received from Ahmedabad District Co-op. Bank and The Gujarat State Cooperative Bank Limited when interest earned from investment made in any bank, not being co-operative society is not deductible under Section 80P(2)(d). 2. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary. 3. It is, therefore, prayed that the order of Ld. CIT(A) may be set aside and that o....

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....ome. The assessee was issued show cause notice dated 21.12.2019 and the assessee replied the same. After taking cognisance of the same, the Assessing Officer disallowed the claim of the assessee under Section 80P of the Act to the extent of Rs. 1,42,75,240/-. 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 5. The Ld. DR submitted that those Banks are working under Banking Regulation and, therefore, the exemption claimed by the assessee Co-op. Bank/Society cannot be held as deduction under Section 80P of the Act as those Banks are not Co-op. Societies and not the Member of the assessee society. The Ld. DR relied upon the decision of Hon'ble A....

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....ent proceedings that the assessee has not filed the return of income. The notices issued alongwith questionnaire categorically mentioned information called upon the assessee relating to dividend from Co-op Society and interest from Co-op Society for which the assessee has given the detailed reply alongwith its submissions. Thus, the CIT(A) merely by deciding the case on merit cannot ignore legal aspect and state that it is infructuous. The reopening is on very same issue and, therefore, it is second opinion. Thus, application under Rule 27 of the Income Tax (Appellate Tribunal) Rules, 1963 is allowed. Since the assessment itself becomes bad in law, the issues contested by the Revenue in the present appeal does not require any comment. Hence....